With the December report, we can finally answer the question, “How did we do for the year?” For the North Texas area, the total number of homes sold was up 8%, and the average price of homes sold in 2005 was up 5%. On average, it took 71 days to sell a home. Nice and steady, pretty modest growth.
The strongest growth occurred in opposite ends of the area, with Frisco home sales up 22% and Uptown/Turtle Creek and Downtown sales up 18%. Families moved to new suburbia and singles and empty-nesters moved closer to the urban center.
The strongest growth in the average price of homes sold was not in Frisco or Uptown. Instead, the best results in price were in the Park Cities (+11%), East Dallas (+11%) and North Dallas (+10%), where most of the activity is in re-sales. Frisco and Uptown/Turtle Creek and Downtown are centers of new home construction, which heightens competition for the sale of existing homes and tends to keep a lid on price appreciation. The remaining submarkets showed modest price appreciation or, in the case of Richardson, a 1% decline from 2004.
What will 2006 bring? More construction in Frisco and the Uptown/Turtle Creek and Downtown area, for sure. Interest rates are still attractive (6% on a conventional 30-year loan), builders want to build, the economy is expanding, and people are still moving to Dallas. Several high-rise condo projects will be ready for occupancy this summer, especially in Victory, at the American Airlines Center. The coming year looks like it will be a continuation of the “slow and steady” growth we’ve experienced since 2003. Dallas is a very affordable market, and this bodes well for upside potential. And, when you are watching the news or reading the papers, remember that the real estate business is a very regional business. What happens in Vegas stays in Vegas and in Phoenix, California, DC, Boston and other high flying markets. If there are big corrections in those markets, as the pundits like to predict, it doesn’t necessarily apply to Dallas. We should continue to march along, slow and steady.
Stats
Here are the details for single family homes and condo/townhome sales in selected areas. For a more comprehensive look at any one market, give me a call. Scroll down for the “Sales by Price Category” info. DOM is short for Days on Market. Avg Price pertains to sales occurring in the period(s).
Overall Market (North Texas):
Dec 05 vs 04: Sales down 10%, avg price up 10%, DOM 73, down 3%.
YTD 05 vs 04: Sales up 8%, avg price up 5%, DOM 71, down 1%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Dec 05 vs 04: Sales up 12%, avg price down 14%, DOM 82, down 35%.
YTD 05 vs 04: Sales up 18%, avg price up 1%, DOM 86, down 7%.
Highland Park and University Park, Devonshire and Greenway Parks:
Dec 05 vs 04: Sales up 22%, avg price up 3%, DOM 65, down 21%.
YTD 05 vs 04: Sales down 5%, avg price up 11%, DOM 59, down 12%.
East Dallas (incl M’s and Lakewood):
Dec 05 vs 04: Sales down 1%, avg price up 6%, DOM 64, down 9%.
YTD 05 vs 04: Sales up 9%, avg price up 11%, DOM 64, up 2%.
North Dallas (South of LBJ):
Dec 05 vs 04: Sales down 11%, avg price up 37%, DOM 57, down 32%.
YTD 05 vs 04: Sales down 4%, avg price up 10%, DOM 70, down 15%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Dec 05 vs 04: Sales unchanged, avg price down 7%, DOM 56, down 28%.
YTD 05 vs 04: Sales up 1%, avg price up 2%, DOM 55, down 7%.
Northwest Dallas:
Dec 05 vs 04: Sales down 30%, avg price up 14%, DOM 92, up 28%.
YTD 05 vs 04: Sales up 3%, avg price up 5%, DOM 62, down 7%.
Northeast Dallas (incl Lake Highlands):
Dec 05 vs 04: Sales down 7%, avg price up 17%, DOM 62, down 7%.
YTD 05 vs 04: Sales up 3%, avg price up 5%, DOM 55, up 2%.
Plano:
Dec 05 vs 04: Sales down 16%, avg price up 13%, DOM 53, down 22%.
YTD 05 vs 04: Sales up 4%, avg price up 7%, DOM 54, down 8%.
Frisco:
Dec 05 vs 04: Sales up 9%, avg price up 10%, DOM 69, down 5%.
YTD 05 vs 04: Sales up 22%, avg price up 2%, DOM 69, down 9%.
Richardson:
Dec 05 vs 04: Sales down 4%, avg price up 16%%, DOM 60, down 14%.
YTD 05 vs 04: Sales down 1%, avg price down 1%, DOM 56, down 3%.
Southlake:
Dec 05 vs 04: Sales down 8%, avg price down 10%, DOM 66, down 10%.
YTD 05 vs 04: Sales up 5%, avg price up 14%, DOM 56, down 20%.
Here is a look at single family home sales by price category for YTD 2005 vs 2004:
$200-299K (15.9% of sales): up 15%, 5 months inventory
$300-399K (6.2% of sales): up 19%, 6 months inventory
$400-499K (2.3% of sales): up 24%, 7 months inventory
$500-599K (1.2% of sales): up 17%, 8 months inventory
$600-699K (0.8% of sales): up 31%, 8 months inventory
$700-799K (0.6% of sales): up 23%, 8 months inventory
$800-899K (0.4% of sales): up 25%, 11 months inventory
$900-999K (0.2% of sales): up 31%, 11 months inventory
$1MM and up (1.1% of sales): up 23%, 13 months inventory
Here is a look at condos and townhomes sales by price category for YTD 2005 vs 2004. Some builders do not report their sales in MLS–this list represents MLS reported sales only (as does this entire report).
$200-299K (11.9% of sales): 568 units vs 459 units year ago, 7 months inventory
$300-399K (6.6% of sales): 271 units vs 194 units year ago, 12 months
$400-499K (2.5% of sales): 123 units vs 92 units year ago, 16 months
$500-599K (0.7% of sales): 67 units vs 19 year ago, 9 months
$600-699K (0.5% of sales): 25 units vs 22 year ago, 20 months
$700-799K (0.5% of sales): 14 units vs 10 year ago, 22 months
$800-899K (0.2% of sales): 12 units vs 8 year ago, 22 months
$900-999K (0.2% of sales): 6 units vs 3 year ago, 34 months
$1MM + (0.2% of sales): 10 units vs 14 year ago, 95 months